Editorial: Flood insurance should remain affordable

Under a new flood insurance law, property owners accustomed to paying a few hundred dollars a year could be facing premiums of tens of thousands of dollars a year.

It sounds outrageous - and it is. Such a rate hike will make the protection of flood insurance unaffordable for those who need it most. And that should not be allowed to happen.

It's encouraging that members of Louisiana's congressional delegation, along with members of Congress from other states that will be hard-hit by the rate hike, are working together to find a solution.

For decades, the National Flood Insurance Program has provided low-cost flood insurance to protect homes and businesses in flood-prone areas.

But there's a problem. The NFIP is facing a $24 billion deficit after paying out huge sums in benefits following flooding in New Orleans during Hurricane Katrina, and again after Hurricane Sandy hit the New York and New Jersey area.

To help mitigate the drain on NFIP, the Biggert-Waters Flood Insurance Reform Act of 2012 was passed, reauthorizing national flood insurance with the idea of making it self-sustaining. The law changed the way premiums would be assessed, basing them on risk of flooding, said a staffer in the office of U.S. Rep. Bill Cassidy, R-Baton Rouge.

In some areas of the country, that could mean the wealthy may not be able to insure their vacation homes. Here in Louisiana, people live on the coast and in other flood-prone areas chiefly to be near their work. The fishing and oilfield industries are necessarily located on or near the coast, for example.

Although members of Congress from coastal states voted in favor of Biggert-Waters, most are shocked at what they have termed the "exorbitant" rate increase that was one of the presumably unintended consequences of the law. And that also goes for one of the bill's lead authors, U.S. Rep. Maxine Waters, D-Calif., according to information from U.S. Sen. Mary Landrieu's office.

Although FEMA has issued a rate chart, the process of determining premiums is so complex it's difficult to predict individual rates at this time, according to Cassidy staffers.

Rates depend on the risk of flooding. Other factors, such as flood preparedness, are taken into consideration, as well. Property owners who live in areas that are protected by levees, including those who built their own small levees, and those who elevate their homes above sea level, will qualify for discounted premiums.

That is good news for people in those areas, and for those who can afford to elevate their homes, but not for thousands of others.

Here's another wrinkle: People in areas that are not currently considered to be in flood zones may find themselves in one, after FEMA finishes redrawing lines on flood maps, which are under revision.

Some members of Congress from coastal states like Louisiana, New York and California, have launched bipartisan, bicameral efforts to find ways to keep flood insurance affordable.

In a time when congressional gridlock seems to be the norm, it's encouraging to see members of Congress reaching across the aisle over such an important issue.

Cassidy is among them. He, along with U.S. Reps. Cedric Richmond, D-New Orleans, Steve Scalise, R-Jefferson Parish, Waters and others, has sponsored legislation to delay implementation of the new rates for certain property owners, at least until the new FEMA flood maps have been completed. His bill passed the House by a vast majority and will go before the Senate.

The exceptions to this legislation are properties in areas of repetitive flooding, second or vacation homes and property bought or built after passage of the Biggert-Waters law.

Although it leaves those property owners unprotected, it is a start. And it is hoped it will buy time for Congress to fix the law permanently.

Flood insurance is not a luxury for those who live and work on the coast and in other flood-prone areas. They make a vital contribution to the economy of the state. They face the possibility of losing everything from storm surges and river flooding. They deserve the peace of mind that comes from knowing they will be able to rebuild when and if it happens.

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Editorial: Flood insurance should remain affordable

Under a new flood insurance law, property owners accustomed to paying a few hundred dollars a year could be facing premiums of tens of thousands of dollars a year.